Amid many of the thematic bubbles over time, one of the more recent cases has been in the Cannabis space. Its growing acceptance for medicinal use saw prices sore a number of years ago, only to see it all go up in flames as an insatiable thirst for capital, tiny industry moat and slower than expected regulatory acceptance saw many leave the space disappointed.
Which is why when I saw a profitable player in this space, it piqued my interest and have therefore decided to write about it today. The company is Vitura Health (ASX:VIT), previously known as Cronos, and is not your typical Cannabis play.
For one, as mentioned they are profitable and even pay a dividend! And second is that unlike the majority of the players in the space involved in the cultivation, extraction and manufacturing, VIT is involved predominantly in the distribution and clinical side of the downstream process.
The company is most well known, and receives the vast majority of its revenues from its CanView platform which operates Australia's largest regulated medicinal cannabis marketplace. It connects product manufacturers, practitioners, authorised pharmacies and customers. With some 200 products distributed on the platform it is rapidly becoming the place where suppliers are connected to customers. Vitura in the last half sold a record 450,000 medical cannabis units through its CanView platform, which was 130% higher than the pcp. So far, over 1 million units have been sold on the platform.The company is confident of reaching the 2.0 millionth unit milestone before the end of calendar year 2023.
The company also has its Clinics – CDA Clinics (in person) and Cannadoc (telehealth) to help support distribution. Excitingly the company entered a joint venture with a Canadian Firm to establish Cortexa, based in Melbourne, and is one of the only companies in the world able to supply validated psychedelics ready for patient use. In fact from the start of this financial year, medicines containing the psychedelic substances psilocybin and MDMA (3,4-methylenedioxy-methamphetamine) can be prescribed by specifically authorised psychiatrists for the treatment of certain mental health conditions. As a result of these regulatory changes, Cortexa is one of the only companies in the world able to supply validated MDMA and Psilocybin…
